Edison International Upgraded to Buy; Q4 EPS Seen at $1.47, 40% Gain
Edison International was upgraded to Buy after a technical breakout and carries 2025 EPS guidance of $5.95–$6.20 with a reaffirmed 5%–7% core EPS CAGR through 2028 and no new equity planned. The company will report Q4 results on Feb. 18 with consensus operating EPS of $1.47 (up 40% year-over-year) and expected revenue of $4.38 billion (up 9.9%).
1. Upgrade and Valuation
Edison International received a Buy upgrade following a technical breakout. Analysts highlighted the stock’s attractive valuation metrics and noted that no additional equity issuance is required to fund capital expenditures.
2. Wildfire Liability Discount
A 10% valuation haircut was applied to reflect potential wildfire-related liabilities. Even with this adjustment, the peer-adjusted earnings multiple suggests the stock remains undervalued.
3. Q4 Earnings Expectations
The company is scheduled to release fourth-quarter results on February 18, with the consensus operating EPS estimate at $1.47—a 40% increase from the prior year—and expected revenue of $4.38 billion, representing 9.9% year-over-year growth.
4. Long-Term EPS Guidance
Management reaffirmed 2025 EPS guidance at $5.95–$6.20 and projects a 5%–7% core EPS compound annual growth rate through 2028, driven by regulated rate base expansion and capital investments in grid reliability.